Samsung Quarter One Profit Guidance Beats Street View

Thursday, 4 Apr 2013 | 7:46 PM ETReuters

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Samsung, the iPhone's main adversary, estimated its January-March operating profit rose 53 percent to 8.7 trillion won ($7.7 billion) as sales of mid-tier smartphones helped the South Korean giant tide over the off-peak season.

The guidance, released ahead of full quarterly results by April 26, was better than an average forecast for 8.3 trillion won in a poll of 42 analysts by Thomson Reuters.

That marks the end of five straight quarters of record profits for the world's biggest technology firm by revenue. But analysts say earnings will hit a new high in the current quarter as Samsung's Galaxy S IV smartphone hits the market this month.

The Galaxy S and Note series have fueled Samsung's record-breaking earnings growth and made it the No.2 player in the global premium smartphone segment after Apple. But as the high-end market swarms with new offerings, Samsung is turning to less affluent customers in emerging markets, offering cheaper models such as the Rex and Galaxy Pop, analysts said.

Samsung capitalized on its 30-plus smartphone models that cover nearly all price points to boost shipments to a record in the first quarter while the post-year end holiday season sapped sales at chief rival Apple, according to the analysts.